A prominent user of the decentralized social media network (DeSo) Friend.Tech has sold 176 keys worth 850 ETH, before switching over to New Bitcoin City, a social media app built on the Bitcoin (BTC) blockchain.
On Monday, Coindesk reported that Friend.Tech and X (formerly Twitter) user “Vombatus_eth” sold 176 keys, which pocketed him somewhere in the range of $1.5 million. Being one the biggest key holders on the platform, Vombtus continues to hold on to 150 keys.
Friend.Tech User Ditches Platform For New Bitcoin City
Friend.Tech, which was launched with much fanfare in August, allows users, especially Twitter and Instagram influencers, to tokenize their social network as “Keys” that can be bought or sold by their followers.
The mechanism only allows users to interact with one another or send private messages if they purchase each other’s share keys. The revolutionary DeSo platform, built on Coinbase’s Base blockchain, quickly gained popularity, amassing over 100,000 users and millions of dollars in revenue within just weeks of going live.
On launch day, blockchain analytics firm DefiLlama reported that the platform generated over $1.12 million in transaction fees in under 24 hours of trading, surpassing the user and transaction numbers achieved by layer-2 scaling solutions Arbitrum and Optimism (OP) on the same day.
Various reports stated that Friend.Tech had facilitated over 650,000 transactions from 60,000 unique users, generating $818,620 in revenue in the process.
Crypto influencers, such as “RookieXBT” started an account on the platform and invited his X followers to purchase shares that would grant them exclusive access to his affiliate group. Milwaukee Bucks player Grayson Allen and FaZe Clan founder Richard Bengston II also joined Friend.Tech. Their shares ended up being some of the priciest on the network.
BRC-20 Standard Opens Up Bitcoin To Fungible Tokens And DeFi Applications
However, Friend.Tech started to lose its momentum after newer and more innovative platforms started to surface in the decentralized social media space. Applications like the New Bitcoin City, have clawed a fair amount of the Friend.Tech’s users. Vombatus was instrumental in helping the Bitcoin-based DeSo app break through its $3 million locked-in value on Monday.
New Bitcoin City started life as a gaming and arcade platform on the Bitcoin network in August and released its social media app late last month. The application has opened up a whole new world of opportunity on the Bitcoin blockchain, which had been limiting its capability for years.
Speaking to crypto news outlet Coindesk, blockchain developer “punk3700” said that before New Bitcoin City, BTC’s usage in DeFi applications was limited to wrapped representations of the asset on Ethereum (ETH) or Solana (SOL). With the DeSo platform added to the mix, he says that Bitcoin holders can finally use their Satoshis on interactive applications.
Earlier this year, a pseudonymous on-chain analyst called Domo created the “Bitcoin Request for Comment” or BRC-20 token standard to facilitate the issuance and transfer of fungible tokens on the Bitcoin blockchain. It resulted in developers issuing tokens and building DeFi applications on Bitcoin.
Unlike Ethereum’s ERC-20, the Bitcoin standard cannot interact with smart contracts, instead, it acts as a simple way to store script files in Bitcoin and use it to attribute various tokens to Satoshis for them to be later transferred between users.
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BTC Surges As SEC Edges Closer To Approving Bitcoin Spot ETF For US Markets
Bitcoin-focused meme-tokens like OG, PEPE, and ORDI, and social network platforms like the New Bitcoin City are gaining momentum as Bitcoin (BTC) continues to make significant gains in the market. In the past week, the leading cryptocurrency has surged about 20% in value on the hopes of a possible Bitcoin-focused exchange-traded fund (ETF) being approved in the United States.
On Monday, the D.C. Appeal Court finalized its ruling in the Grayscale vs SEC lawsuit, ordering the US financial regulator to reconsider the crypto asset manager’s application to convert its $17 billion Grayscale Bitcoin Trust (GBTC) fund into a spot Bitcoin ETF. The news led to Bitcoin crossing the $30,000 mark for the first time in three months.
Currently, there are a dozen traditional and crypto asset management firms, including BlackRock, Fidelity, and Ark Invest, awaiting a decision from the SEC to list their Bitcoin ETFs for the US spot market.
At the time of writing, Bitcoin (BTC) is trading at $34,614 – up 12.9% from its previous day’s price.
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